VANCOUVER, Feb. 9 /PRNewswire/ - Luna Gold Corp. (TSXV-LGC) ("Luna Gold" or the "Company") is pleased to announce the commencement of commercial production at the Company's Aurizona Gold Mine ("Aurizona"), located in Maranhão State, Brazil.
Aurizona Gold Mine Status Highlights:
- Gold Production for November and December 2010 and January 2011, totals 10,905 ounces
- Combined 90-day average throughput rate in excess of 3,615 tonnes per day, including peak daily throughputs as high as 5,000 tonnes
- Additional plant modifications to be completed in February and March 2011 will increase productive capacity and provide more consistency in production
- Full production ramp-up to consistently produce 4,500 tonne-per-day capacity is on schedule from April 2011
- On track to meet 2011 gold production guidance of 55,000 to 60,000 ounces
"Over the course of its construction and production ramp-up, Aurizona has overcome significant challenges and achieved an operational milestone today with the commencement of commercial production," said John Blake, President and CEO, of Luna Gold Corp.
"Our operational and exploration teams have demonstrated their skills and expertise to achieve this production milestone. We will apply these skills to our next suite of growth projects, which include the expansion of the Aurizona production capacity, increasing the Aurizona resource base, advancing the Cachoeira development project and fast tracking new discoveries in our highly prospective 170,000 ha land holding in Maranhão State."
Gold is now being routinely produced and sold to customers around the world. As this successful ramp-up continues, the Company will focus on cost reduction and the acceleration of cash flows. Guidance on production and cash operating costs will be provided in the next quarterly report.
Aurizona's feasibility study has a designed processing capacity in year one of 55,000 ounces of Gold, ramping up to 60,000 ounces of gold per year for an 11 year mine life.
The Company continues to advance a number of initiatives to further enhance the economics at Aurizona with the aim to increase production capacity. To provide for this additional capacity, the Company is undertaking major drill programs at Aurizona with the aim of increasing the resource base. There is potential for significant supplemental gold production from satellite deposits identified in the near mine area. The Company also holds an additional 170,000 ha of exploration licenses in the state of Maranhão, where exploration teams have identified several priority targets which are being advanced to drill stage. Additionally, the Company is planning to commence a scoping study based on the recently announced NI 43-101 maiden resource estimate at Cachoeira, in Para state, Brazil.
About Luna Gold Corp.
Luna Gold is a gold mining and exploration company engaged in the exploration and development of gold deposits and advanced stage gold exploration projects in Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
John Blake- President and CEO
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the United States Securities Act of 1933 and applicable state securities laws or an exemption from such registration is available.
Titus Haggan Ph.D., EurGeol Certified Professional Geologist #746, Luna's VP Exploration is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has supervised the preparation of and reviewed certain technical disclosure in this press release.
Further information on the Aurizona Gold Mine can be found in the technical report entitled "NI 43-101 Technical Report Mineracao Aurizona S.A. Aurizona Project" and dated September 1, 2010 as filed on SEDAR at www.sedar.com under Luna's profile.
This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by Luna Gold Corp. are forward-looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of Luna Gold Corp. to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause Luna Gold Corp.'s actual results, performance or achievements may be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, mine development and production costs, the projected life of the Company's mines, future production levels, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE Luna Gold Corp.